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Aren't we expecting news on this? Not sure how we're going to be generating income in July if the upfront costs that the funding was to be used for isn't there.
Indeed DomHen.. we remain in the dark on funding and implementation progress....
And my guess is this implementation phase might take longer than originally hoped.... it's Africa , things takes longer.. etc..
But this contract is miles off being fully priced in at our current share price/market cap level .. so Mr Market may well already be pricing in such possible implementation delays imho (the Market cap here being only 8 m gbp as I type this)
Once running they generate income, if it’s running from next month when the 90 days is up then income starts. What they do with that income is another matter. I’d imagine most will be used to cover costs to grow the contract expansion for a while?
‘the contract is expected to generate revenues of circa US$10m in the first 12 months of operation. In addition, there is an opportunity under the contract for further revenues, in due course, from domestic traffic and cargo screening operations.’
I think we were starting the contract off with our own funds approximately 850 thousand in the bank and 400k overdraft facility.and looking at wether we needed any more or if the income coming in would carry the contract.mg
Manx: by my understanding you’re right. But I don’t think it’s an if. They have enough cash for initial start up, but will require additional funding. But revenues (which should be in the region of $5m for the remainder of this year (assuming the revenues are split broadly evenly over the year)) will be used towards the ongoing set up costs.
I think they’ll do a debt funding of some sort (if they haven’t already) and actually think they may try to pre fund the next MSC (assuming it’s as close as they hoped).
From the Investor Presentations... it was made clear by PF and MH,... that they had several equity finance offers on the table,..----
So the longer that this goes on,... without them having to take on the inevitable 'debt' package,, the more positive I believe this to be. The second MSC they mentioned,..which they suggested was close to coming to fruition.. may also be nearing a completion.
With numbers up in Freetown and the new terminal,..... this could be a very exciting few months.
And even more excitingly, my end of month SP prediction is back in play. ;)
With a contract of this size and duration WSG is seriously undervalued, the market is waiting for confirmation that we can fund the contract & revenues are starting to roll.
It’s going to be interesting to see what else is announced once this is live.
I’m confident I’ll be taking the Crown 👑 from Linton, sorry old chap.
Mike: don’t you mean several debt options on the table? That’s was my read. I felt that equity was not remotely on the table (but not 100% ruled out, which they never can do as they can’t see the future).
Aiming.... apologies,... you 're absolutely right......that is what I meant.
Best
Mike
7 MM’s on this & opened up 5.93% which is abit of a ruse, as they closed it down 1.29% on Friday after only solid buying, including a decent 200K buy after 4pm.
I suspect there isn’t much available at 2.6p so it will move up easily, then we’ll be ‘moving’ and on the leader board, which attracts further trader interest - the fact that substantial revenues are just around the corner May remind ‘non holders’ to take a position shortly.
I’m sensing a rekindled interest here after a 3 month lull, an announcement from WSG in the form of an RNS detailing the effective start of what is simply an enormous contract (compared to current MCap) will be issued.
Initial 10 year 5 Airport contract worth over £100M with plenty of additional opportunities to increase this revenue.
We just await detail on funding.
Interesting, NT to buy, just tried topping up following my own post 😂…..
Day 75 of 90.
Just a couple of weeks left. Hopefully its on time.